Micro-source Semiconductor builds core competitiveness in multiple dimensions to replace domestic power management chips

According to Jiwei.com, in recent years, with the continuous expansion of emerging application markets, the market demand for power management chips has grown rapidly, but this field has long been dominated by imported products, with 80% of the market share being monopolized by European and American manufacturers. However, with the gradual rise of manufacturers such as Microsource Semiconductor, Shengbang Shares, Awin Electronics, and SiRuiPu in the fierce market competition, this situation is expected to change.

After years of continuous development, Microsource Semiconductor's power management chip products are comparable to similar foreign chips in terms of performance indicators such as efficiency, power consumption, and integration. At the same time, it continues to iterate and optimize its products to provide customers with the best solutions and further promote the localization of power management chips.

Strong market demand

In recent years, with the emergence of consumer electronics, mobile communications, new energy vehicles, smart homes and other applications, new market opportunities continue to emerge, the application field pattern has expanded, and power management chips have shown a flourishing situation. At the same time, driven by consumption upgrades and new technology developments, the functions of various electronic products in my country are becoming increasingly diversified, and product updates and iterations have also led to an increase in demand for power management chips.

Specifically, benefiting from the rapid development and popularization of 5G, communication base stations are expected to bring new growth to the power management chip market. At the same time, the shipments of 5G mobile phones have increased significantly, and the increase in the use of RF front-end chips, large screens, and high power consumption have all driven the growth of power management chip shipments.

In audio transmission equipment, power management chips are mainly used to power internal chips and drive audio amplifiers. Applications include TWS headphones and Bluetooth speakers. As TWS headphones become more long-lasting and intelligent, the requirements for power management chips will also increase, and the cost share of power management chips in TWS headphones is expected to increase.

In addition, IoT devices use Bluetooth chips, WiFi chips, MCUs, sensors, etc. to achieve networking and interactive functions. With the increase of various chips in IoT devices and the demand for low power consumption, the demand for power management chips in this field is expected to continue to grow. The continued increase in shipments of smart home products such as sweeping robots will further drive the market demand for power management chips.

Driven by multiple application fields, the growth of the power management chip industry has accelerated. According to public data, the output value of global power management chips was US$25 billion in 2018, and the market size is expected to reach US$56.5 billion in 2026. The scale of China's power management chip market has also increased from 52 billion yuan in 2015 to 78 billion yuan in 2020.

Dai Xingke, general manager of Microsource Semiconductor, said, "As emerging application markets continue to expand, the market size of power management chips is expected to grow at a relatively fast rate. This market demand is not increasing linearly, but exponentially."

Breaking foreign monopoly and focusing on product innovation

Although the market prospects are good, foreign companies such as TI, ADI, Qualcomm, and Infineon currently occupy more than 80% of the market share. Domestic power management chip companies are far behind in scale and have a low market share. The product categories and the ability to provide a full range of solutions need to be further improved, and there is a large space for domestic substitution.

Dai Xingke said, "Foreign manufacturers have a complete range of products, cover a wide range of fields, and are highly competitive. Judging from the scale of enterprises alone, there is still a large gap between domestic analog chip companies and foreign giants, which is mainly reflected in the performance, process, and technology iteration of cutting-edge products. However, in the subdivided field or a certain product, some domestic products have surpassed the level of foreign companies, especially in the mid- and low-end chips. Domestic manufacturers will optimize according to the needs of the market and customers, and their cost-effectiveness has exceeded that of some foreign companies, and they are highly competitive."

As a leader in the power management chip industry, Microsource Semiconductor has made breakthroughs in many fields. It currently produces more than 1,000 models of power management chips, covering display screens, mobile communications, wearables, the Internet of Things and other fields.

As we all know, "lack of chips and screens" was once a pain point in my country's semiconductor industry. With the strong rise of manufacturers such as BOE and Huaxing Optoelectronics, the domestic "lack of screens" problem has been basically solved, but the "lack of chips" problem is still a long way to go. However, after years of hard work, Weiyuan has become a leading supplier of domestic display power chips, breaking the monopoly of foreign manufacturers.

At the same time, Microsource Semiconductor's power management chips have long been widely used in TWS headphones, fast charging, sweepers, mobile phones, network communications and other products. As the shipments and market share of the above products gradually increase, the shipments of its power management chips will increase significantly.

Dai Xingke said, "Manufacturers that can do well in the market have their own unique features in terms of product performance, quality, cost and customer service. For Microsource Semiconductor, we will ensure that we provide customers with the best solution based on product quality and performance."

At present, Microsource Semiconductor's power management chip products are comparable to similar foreign chips in terms of performance indicators such as efficiency, power consumption, and integration. Dai Xingke said, "For Microsource Semiconductor, the company still needs to continuously iterate and update, optimize products, and deepen its understanding of products and customer needs in the sub-segments, and develop product solutions that are better than those of foreign companies. Once we enter a field, we will occupy it and gradually become bigger and stronger."

Build core competitiveness in multiple dimensions

In addition to strengthening product technology research and development, Microsource Semiconductor has also established long-term and stable cooperative relationships with upstream and downstream manufacturers. Especially in the current context of global "chip" shortage, the security of the industrial chain is a key factor in the development of enterprises.

Since last year, the supply of 8-inch wafer production capacity has been tight, and power management chips have also been out of stock and prices have risen. Dai Xingke said, "As the supply of MCUs has eased, the current shortage of power management chips should be ranked first. In terms of production capacity, the demand for domestic chips has increased significantly, while the domestic chip supply is also obviously insufficient, resulting in a shortage of chips."

As we all know, the epidemic has spurred the development of the stay-at-home economy, driving the growth of demand for laptops, TVs, tablets and other products. The strong demand for display panels has also led to a rapid increase in demand for display power management chips. Dai Xingke said, "Domestic panel manufacturers told us that as long as you give me one more chip, I can sell one more screen." This further confirms that the demand for power management chips is growing rapidly, but there is a problem of insufficient supply.

At the same time, power management chip products have continued to rise in price due to shortages. Dai Xingke said, "The price increase of products can be divided into several reasons. The first is the price increase of raw materials. The second is the supply and demand relationship. The demand has increased, the supply has remained unchanged, and the market panic and trade frictions have accelerated the localization process. The combination of multiple factors has caused the product prices to continue to rise."

Regarding how to ensure production capacity, Dai Xingke said, "Microsource Semiconductor's supply capacity has been greatly improved compared with the past. First, the company has a mature and stable supply chain, and the stability of product demand is worthy of the trust of suppliers, which can ensure the company's production capacity supply; second, on the client side, the company gives priority to the needs of strategic customers. From both aspects, the contradiction between supply and demand of important customers is alleviated."

Overall, after more than ten years of deep cultivation and layout, Microsource Semiconductor has accumulated a certain brand reputation in the competition with its profound technical accumulation, outstanding R&D and innovation capabilities, and outstanding performance and reliable quality product series. It also provides domestic customers with better solutions through customized and differentiated services, thereby gradually replacing the international brand products originally used by customers.